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Service-oriented architectures promise easier integration of functionality in the form of web services into operational systems than is the case with interface-driven system-oriented approaches. Although the Extensible Markup Language (XML) enables a new level of interoperability among heterogeneous systems, XML alone does not solve all interoperability problems users contend with when integrating services into operational systems. To manage the basic challenges of service interoperation, we developed the Levels of Conceptual Interoperability Model (LCIM) to enable a layered approach and gradual solution improvements. Furthermore, we developed methods of model-based data engineering (MBDE) for semantically consistent service integration as a first step. These methods have been applied in the U.S. in collaboration with industry resulting in proofs of concepts. The results are directly applicable in a net-centric and net-enabled environment.